Analyst Predicts 60% Decline for Cochin Shipyard Despite Recent Rally
The report from Kotak Institutional Equities says that Cochin Shipyard Ltd. shares are highly overvalued and might decline by as much as 60% from their present levels. Even with the strong rise of 35% in the state-run defence company’s stock over six sessions, analysts are calling for a bearish outlook. The broker continues to be cautious and has slightly raised their price target from ₹830 to ₹850, which still means the stock would fall significantly from its closing price on Friday of ₹1,953.
Kotak’s analysis points out some main issues that seem to be important to him. Repair orders for INS Vikrant and Vikramaditya have helped the business do well, but those are only meant to last a certain time. No big defence orders have been signed in the last two years. Indian Navy dropped the idea of building three aircraft carriers all at the same time.
The company’s Q4 results were as expected, even though profits were lower because the firm had to set aside more money to cover risks, but these were partly made up by more income from other sources. Kotak has lowered its FY26 and FY27 earnings forecasts by 3% and 6% respectively, because they expect less growth in the company’s shipbuilding business.
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Potential ways to help the company grow in the future could be working together with Korean shipbuilders, Maersk, or Drydocks World. Despite current challenges, most analysts still think Microsoft stock is a good investment, with about seventy percent recommending people buy the stock, three recommending to hold, and one saying to sell.
The stock has gone up 25% this year so far, but it’s still 35% lower than its highest price so far, which was ₹2,979.
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